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Sembcorp Industries News

27 Apr 2022

Offshore Rig Builders Keppel O&M and Sembcorp Marine Set to Combine

Caption: From left: Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel O&M; Mr Chris Ong, CEO of Keppel O&M; Mr Wong Weng Sun, President & CEO of Sembcorp Marine, and Tan Sri Mohd Hassan Marican, Chairman of Sembcorp Marine at the signing of definitive agreements between Keppel Corporation and Sembcorp Marine for the Proposed Combination of Keppel Offshore & Marine and Sembcorp Marine.

Singapore's Sembcorp Marine (Sembmarine) has agreed to a multi-billion dollar merger with Keppel Corp's larger offshore and marine unit, a year after the Temasek-backed firms began deal talks to cope with an industry downturn.The loss-making oil rig builders have been whiplashed by years of oversupply and oil price volatility as well as a drop in new orders.Such troubles have been exacerbated by the global transition towards renewable energy, consolidation at Chinese and South Korean rivals…

09 Jun 2020

Temasek Supports Sembcorp Marine's $1.5B Rights Issue

For illustration; Sleipnir, the world’s largest and strongest semi-submersible crane vessel built by Sembcorp Marine - Credit- Sembmarine

Singapore's Temasek Holdings stepped in on Monday to support a S$2.1 billion ($1.5 billion) rights issue by Sembcorp Marine as the state investor moves to help the city-state's struggling rig-building sector.Following the deal, loss-making Sembcorp Marine, which has been hit hard by an industry downturn, plans to demerge from its parent company Sembcorp Industries."It's just the next step in Singapore's long overdue consolidation of the offshore and marine sector," said KGI Securities analyst Joel Ng.

21 Oct 2019

Temasek Bids $3 Bln for Control of Keppel

(File photo: Keppel Offshore & Marine)

Singapore state investor Temasek Holdings is offering to buy control of conglomerate Keppel Corp in a S$4.1 billion ($3 billion) deal that could hasten a consolidation in the rig building sector which is battling the effects of low oil prices.The announcement, which confirmed what two sources with knowledge of the matter told Reuters earlier on Monday, boosted shares in rig builder Sembcorp Marine by 12% on expectations of a likely shake-up in the industry. Shares in Sembcorp's parent Sembcorp Industries rose 10%.Keppel's offshore and marine unit…

03 Jul 2019

Brazil Searches Sembcorp Yard in Graft Probe

(File photo: Sembcorp Marine)

Singaporean rig builder Sembcorp Marine said on Wednesday that authorities had searched its shipyard in Brazil as part of a graft investigation, sending its shares lower and underlining the staying power of Brazil's ongoing "Car Wash" corruption probe.Sembcorp Marine said the search was related to investigations against former consultant Guilherme Esteves de Jesus, adding that Martin Cheah Kok Choon, the former president of the Estaleiro Jurong Aracruz shipyard, was also under investigation.In a separate statement…

20 Jul 2018

Sembcorp Marine Swings to Q2 Loss

(Photo: Sembcorp Marine)

Singaporean rig builder Sembcorp Marine Ltd swung into the red in the second quarter, and cautioned a trend of negative operating profit would continue in the near term as overall business volume remains low.It turned in a loss of S$55.6 million ($40.68 million) for the three months ended June, compared with a profit of S$5.1 million in the same period a year ago.Sembcorp Marine, majority owned by industrial conglomerate Sembcorp Industries Ltd, saw its revenue more than double to S$1.63 billion due to revenue recognition on delivery of some rigs.

25 Apr 2018

Sembcorp Marine Outlook Subdued on Q1 Profit Slump

(File photo: Sembcorp Marine)

Singaporean rig builder Sembcorp Marine Ltd said on Wednesday first-quarter profit fell 86 percent, and signaled a subdued outlook for orders and business volumes.Sembcorp Marine said profit came in at S$5.3 million ($4 million) for the three-month period ended March, compared with S$37 million in the same period a year ago.The year-ago profit was boosted by an one-off gain from the disposal of Sembcorp Marine's stake in Cosco Shipyard Co.Overall business volume has remained significantly below peak levels…

24 Jul 2017

Keppel, Sembcorp Merger on the Cards ?

A merger between two of the Singapore’s largest offshore rig builders, Keppel Offshore & Marine and Sembcorp Marine, might be on the cards, report local media quoting the Development Bank of Singapore (DBS). DBS said that with orders at a trough and expectations for only a modest recovery, a merger of Singapore's two major rigbuilders could create a global giant that is more competitive and resilient. “A merger could make sense to further streamline their operations, achieve cost synergies and eliminate competition in the medium term,” DBS said. The report analysed  the possible scenarios for rationalization of the O&M assets involving Keppel, SCI, and its listed subsidiary Sembcorp Marine (SMM). The  two companies were in similar talks back in 2001, but were unable to reach an agreement.

25 Oct 2016

Sembcorp Marine Swings to Loss in Q3

Photo: Sembcorp Marine

Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market. The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact. The company, majority-owned by industrial conglomerate Sembcorp Industries Ltd, said revenue dropped 21 percent.

27 Apr 2016

Sembcorp Profit Halved as Clients Defer Projects

Revenue falls 30 pct; order book at S$9.7 billion. Singapore rig-builder Sembcorp Marine's quarterly profit halved as customers deferred projects, and it faces prolonged uncertainty on contracts from its biggest client, Sete Brasil, whose shareholders have approved its bankruptcy. Sembcorp Marine posted a profit of S$55 million ($41 million) for the three months ended March 31, compared with a profit of S$106 million a year ago. Sembcorp Marine and its cross-town rival Keppel Corp have been hit by slumping orders as oil prices dropped nearly 60 percent since mid-2014. Exacerbating the situation are troubles at Sete Brasil, a company set up by corruption-battered Petroleo Brasileiro SA (Petrobras).

15 Feb 2016

Sembcorp Marine posts first Quarterly Loss.

Posts S$535 mln loss vs year ago profit; net order book backlog at S$10.4 billion. Singaporean rig builder Sembcorp Marine Ltd posted its first quarterly loss, hit by writedowns and project delays by its key customers, underscoring the strain caused by plunging crude oil prices. The company also warned that it expects the downtrend to last longer than previous cycles as Singapore's $10 billion rig building industry faces cancellations and a dearth of new orders. For the fourth quarter, Sembcorp posted a S$535.2 million ($383 million) attributable loss, excluding non-operating items, compared with a profit S$174 million for the same year ago period. It said fourth-quarter net profit would have been S$99 million before impairments and provisions and losses from associates and joint ventures.

08 Jan 2016

Singapore Rig Builders in Crisis

After a decade-long boom, there were zero new orders globally for jack-up rigs last year on account of the current oil downturn. Singapore's largest rig builders finding it difficult to navigate safely, reports The Straits Times. With oil prices swooning, and rigs' daily rental rates having crashed to US$92,000 (S$132,000) from US$130,000 in 2014, there's a risk that 70 per cent of two Singaporean leaders - Keppel Corp and Sembcorp Marine's order book might get cancelled, especially if the Petrobras bribery scandal in Brazil deepens. Analysts at Macquarie caution that Singapore's offshore and marine sector is facing a structural decline, and that the current downturn is even worse than the Global Financial Crisis of 2008-2009. The other big risk comes from the duo's Brazilian yards.

30 Jul 2015

Sembcorp Marine Posts 17% Fall in Q2

Low oil prices and muted sentiment in the industry continued to take a toll on Sembcorp Marine's second-quarter earnings. The rigbuilder has announced that net profit for the three months ended June 30 sank 17 per cent to to $79.58 million (SGD 109 million), compared to $96.37 million (SGD 132 million) a year ago. Turnover dipped 10 percent during this period to $882.0 million (SGD 1.208 billion) compared to $979.10 million (SGD 1.341 billion) in 2Q 2014. But this was offset by higher contribution from offshore and conversion projects as well as its ship-repair business. "The persistently low oil prices have escalated the ongoing cuts in global exploration and production capital expenditure.

18 Jan 2015

21 dead, 1 missing after tug sinks in Yangtze

Chinese authorities have confirmed that 21 people were killed and one is still missing after a tug boat undergoing sea trials sank in the Yangtze River, the state-run Xinhua news agency reported on Saturday. The boat had 25 people on board when it sank on Thursday and three were rescued. Xinhua reported on Friday that seven or eight foreigners were on the boat, including citizens of Singapore and Japan. A French citizen may also have been among the missing. Sembcorp Marine Ltd, a Singapore-based shipbuilder, said on Friday the tug boat that its subsidiary, Jurong Marine Services Pte Ltd, had planned to charter sank during a sea trial. Three of the company's employees were on board.

21 Jan 2008

MISC Proposes $973m Deal for Ramunia

MISChas proposed a $973m deal to merge its shipbuilding business with Ramunia Holdings, an oil services company. The merger would expand MISC’s plans to create a regional business building oil rigs to compete against neighbouring Singapore, which is the world’s largest producer of offshore energy platforms. The deal would be a reverse takeover that could allow MISC to list its Malaysia Marine and Heavy Engineering unit under the Ramunia name in hopes of copying the success of Keppel Corp and SembCorp Industries, Singapore’s biggest oil rig builders, which saw a sharp rise in their shares last year due to higher oil prices. However, the…

18 Apr 2001

SembCorp Lands Dual Rig Contract

SembCorp Marine Ltd, a subsidiary of SembCorp Industries Ltd said on Wednesday it had secured two rig contracts from Santa Fe International Corporation worth about $570 million. SembCorp said that its associated company PPL Shipyard Pte Ltd would construct two deepwater semisubmersible drilling rigs plus options for two additional drilling units. The first two rigs will cost approximately $285 million each, with the option rigs priced slightly higher. Construction of the first rig will commence in May and take approximately 30 months to complete. The second rig is expected to commence 18 months into the construction of the first, and is scheduled to be completed in 24 months.

24 Oct 2001

Joint Statement By Keppel and SembCorp

The managements of Keppel Corporation and SembCorp Industries are holding discussions on the rationalization of the local shipyard industry and the possibility of other collaborations between the two groups.All discussions are at a preliminary stage and may or may not come to fruition. However, these discussions are being held with the understanding that all arrangements must make business sense and create value for shareholders.Shareholders of the two companies are therefore advised not to take any actions which may be prejudicial to their interests. Announcements will be issued publicly should there be any material developments.

25 Jul 2000

Sembcorp Ups Stake In SembCorp Marine

Singapore conglomerate SembCorp Industries Ltd has reportedly acquired another five million shares of SembCorp Marine at S$0.705 each after buying 40 million shares last week. The move led some analysts to speculate that the marine unit could be privatized, given its attractive valuation.

13 Feb 2001

SembCorp Posts Small Profit Rise

SembCorp Marine Ltd. (SCM), Singapore's largest ship repairer, posted a small rise in its 2000 net profit, in line with market expectations. SCM, 63 percent owned by conglomerate SembCorp Industries Ltd. with a market value of about S$1.1 billion, said last year's net profit was S$80.16 million, up 2.3 percent from 1999. Its bottom line was boosted by a one time gain of S$6.5 million from the sale of shares in Jurong Technology Industrial Corp. early last year and a writeback of tax over provisions of S$4.7 million. Analysts have a consensus 2000 forecast of S$81.5 million, according to Multex Global Estimates. The forecasts ranged from a low of S$71.5 million to a high of S$86.8 million.

09 Feb 2001

SembCorp To Post Modest Gains

SembCorp Marine, Singapore's largest ship repairer, is expected to post a modest rise in 2000 earnings, boosted mainly by gains from divestment of a small technology company. SembCorp Marine, a unit of government-linked SembCorp Industries with a market value of about S$1.1 billion ($630 million), is due to report its earnings on Tuesday. Analysts said they expected SembCorp Marine to fare much better than its smaller rival Keppel Hitachi, which reported a 50 percent slide in 2000 earnings due to a weak ship repair market. "SembCorp Marine has a lot more long-term contracts with customers like NOL (Neptune Orient Lines), so that has helped them," said an analyst at Kim Eng Securities. The analyst is forecasting a four percent rise in net profit to S$82.1 million from S$79 million in 1999.

19 Mar 2001

SembCorp To Sell Marine Segment

SembCorp Logistics said on Monday it agreed to sell its marine business to PSA Marine, a unit of Singapore port operator PSA Corp, for S$207.5 million ($117 million). The company said in a statement the sale would be satisfied fully in cash and represented about 1.35 times the proforma net tangible assets of the marine services business as at December 31, 2000. The sale of the marine services business (a 62 percent subsidiary of SembCorp Industries) is part of the company's long-term strategy to exit non-core businesses to focus on logistics, it said. The sell-off the company, which comprises harbor and ocean towage services, salvage operations and marine transportation, had long been expected.

12 May 2006

Oil & Gas Sector Growth to Continue to 2012

Record high oil prices have sent the shares of companies in the offshore and marine sectors rallying up an average of 16.5 percent year-to-date. But analysts spoke to say there is still upside potential, citing factors like strong demand for offshore rigs, which may result in the order books of key beneficiaries like Keppel and SembCorp pushing out to 2012 and beyond. The Singapore stock market may have repeatedly tested new highs in recent weeks, but oil and gas related stocks have done even better, ChannelNews Asia reported. SembCorp Industries, for instance, has outperformed the benchmark Straits Times Index by some 8 percent and Keppel Corp by an even higher 25 percent. Keppel is more exposed to the marine industry, which accounts for about 70 percent of its total earnings.

14 Aug 2001

SembCorp Profits Boosted By Marine

Singapore's SembCorp Industries Ltd is expected to post up to a 60 percent rise in half-year net profit on Wednesday, boosted by its logistics, utility and marine businesses. Out of five analysts polled by Reuters, three forecast an interim net profit of between S$90 million ($51.2 million) and S$107 million, including exceptional gains, compared with S$67.27 million in the same period last year. The stock was at S$1.66, up seven cents at 0830 GMT, and most analysts rated the stock a buy or outperform, with price targets ranging between S$1.80 and S$2.20 on hopes that it could ride out the current cyclical economic downturn. They said its marine business should see a cyclical upturn…

24 Jul 2001

SembCorp First Half Down 6%

SembCorp Marine posted a 6.4 percent drop in half-year net profit to S$39.2 million ($21.4 million) from S$41.9 million in the first six months of 2001. The Singapore-based group -- a subsidiary of the SembCorp Industries conglomerate which concentrates on ship repair, offshore conversion and shipbuilding -- said in a statement its performance in 2001 was expected to be comparable with the previous year. It valued its outstanding order book for 2001-2004 at S$1.72 billion. Despite the lower first-half numbers, analysts say SembCorp Marine is likely to be largely unscathed by the economic downturn as it has an order book valued at around S$1 billion for the next two to three years. SembCorp Marine shares ended half a cent higher at S$0.895 on Tuesday before the results were released.